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Mariyam Jameela

Mariyam Jameela works as a content writer at WareIQ. With a proven track record of working with renowned brands such as GO Digit, Urban Ladder, Juspay, Hong’s Kitchen, and many more. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers

Difference Between Logistics and Supply Chain Management Explained

Difference Between Logistics and Supply Chain Management Explained

The terms logistics and supply chain management are often interchanged. Although there are various similarities between logistics and supply chain management, they are entirely different from one another. They both represent different functions when it comes to managing goods, information and resources. Businesses must understand the difference between supply chain management and logistics in order to optimise operations in the right way and also deliver value to customers. In this article, we will look deeper into the difference between logistics and supply chain management in terms of definitions, along with its roles and functions.What Is Supply Chain Management?Supply chain management (SCM) is the entire process of efficiently producing and delivering goods or services. All the processes that come in between are considered a part of the supply chain. It involves coordinating and involving different activities and stakeholders to meet customers' demands in the end.Below are the key components of supply chain management:The first component or step in supply chain management is planning. Planning involves analysing market data, understanding customer expectations, and finding the proper means to satisfy the customer's demand. Lack of planning may lead to sudden cost increase and unsynced and messy production and distribution processes, which in turn may cause customers to be unsatisfied.The next essential component is the procurement of raw materials that will be used for production purposes. This process includes identifying suppliers and also negotiating contracts apart from acquiring materials.Next is production, where the raw materials are converted into the final goods that are sent out to the customers.The next step is logistic management, which includes the transportation, warehousing, and distribution of goods.Apart from these processes, it is also essential that processes are overseen so that they run smoothly and glitches can be avoided.Related - Top Supply Chain Management Companies in the worldWhat Is Logistics Management?Logistics is a part of the supply chain where the finished goods are stored, preserved, and distributed. Logistics management primarily focuses on the storage and movement of goods from the point of origin to the point of destination (delivery to the customer). Planning, executing, and monitoring are also required in logistics management for the proper movement of goods.Below are the key components of logistics management:One of the key components of logistics is to keep the goods secure until they are sent out for delivery. Proper warehousing is essential to maintain the quality and condition of the goods for a long time. It is significantly necessary for goods that are fragile or perishable. Proper temperature and pressure control systems are required in the warehouse. Next is inventory management. Businesses must monitor stock levels to avoid situations like overstocking and understocking. Another critical component of logistics management is the transportation of goods via different modes, such as rail, road or sea. It is essential to pick the proper mode of transportation to optimise resources while reducing unnecessary costs.One of the most vital components is order fulfilment. It involves activities to ensure that the goods were delivered to customers on the promised timeline.Also, in the case of returns, logistics management involves handling returns, replacing them or recycling them.The primary goal of logistics management is to deliver goods on time while maintaining their best condition.What Is the Difference Between Logistics and Supply Chain Management?Logistics and supply chain management are intertwined and closely related. Logistics is an essential part of the whole supply chain management. There are some similarities, but they are essentially different. Below is a table that shows the difference between supply chain management and logistics management:Comparison AspectLogistics ManagementSupply Chain ManagementScopeIt is a part of supply chain management that focuses more on handling goods, their movement and delivery.It has a much larger scope. Several processes, like logistics, are part of much larger end-to-end business processes.ObjectiveEnsure proper storage and transportation of goods from one place to another while maintaining efficiency.A smooth flow in all the processes leading to timely delivery at the end, and maintaining the quality of the products to ensure customer satisfaction.Key Activities Warehousing, inventory control, transportation and order fulfilment.Planning, sourcing materials, production, logistics, forecasting demand and supply chain management.Technologies UsedUses software like GPS, tracking, routing, and warehouse management.Technologies that are majorly used are IoT, blockchain, ERP and AI for end-to-end assistance.Stakeholders InvolvedLogistics management involves stakeholders like transport companies, warehouse operators, and delivery partners. It includes all the stakeholder's rights, from the supplier and manufacturers to retailers and logistics service providers.Primary FocusIt primarily focuses on the movement of goods up until the deliveryIt focuses on all aspects of business operations, including logistics management.Similarities Between Logistics Management and Supply Chain ManagementSince logistics management and supply chain management are correlated, there are several similarities between the two. Below are significant similarities between supply chain management and logistics management:Both processes aim to provide efficient delivery of final goods to the customer for profit.Both processes eventually aim at a smooth flow of goods, whether it is between the supplier and the business or between the business and the customer.Both processes ultimately help to optimise resources and maximise profits.For Smooth Logistics and Supply Chain Management, Choose WareIQ's Fulfilment Plus Shipping ServicesWareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)Our solution offers:Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codesMulti-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performanceInventory LogIQ: AI-led multi-channel inventory planning solution to minimise stockouts and automate replenishmentLeverage Tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections.A host of seller enablement and support - dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.Related read Difference Between Transportation and LogisticsConclusionBoth logistics management and supply chain management are vital processes that ensure a business's success. As these processes are correlated and co-dependent, it is easy to get confused between them. They have similarities, yet they are pretty different from each other. Logistics management is an essential process in the whole supply chain management. Logistics mainly included storing, managing and delivering the goods that a business produces. On the other hand, supply chain management is a process that involves overseeing all the processes, from planning and acquiring raw materials for production to efficiently delivering goods to the customer. Customer satisfaction while maintaining profits is the ultimate goal of both logistics management and supply chain management.FAQs About Logistics and Supply Chain ManagementIs it possible to have supply chain management without logistics being involved?No, logistics is an inherent part of supply chain management. Without logistics, supply chain management will lose out on various aspects like warehousing, inventory, control, and delivery.What is the difference between supply chain management and logistics management?The main difference between supply chain management and logistics management is the scope and the focus of these processes. Logistics mainly focuses on the transportation, inventory control, and warehousing of goods. At the same time, supply chain management integrates logistics with all other processes in order to ensure an efficient flow of goods from production to delivery.What are some challenges in logistics management?Some challenges faced during logistics management can be rising transportation cost, optimising routes, ensuring timely delivery and management of returns.What is reverse logistics?Reverse logistics mainly involves handling returns. In case the return is impossible, it can further include recycling and disposal of goods.Does supply chain management impact customer satisfaction?Yes, since supply chain management involves ensuring all the processes in a business run smoothly. The end goal is definitely customer satisfaction. One error in any of the processes, from the sourcing to the production to the delivery, can lead to poor quality products or untimely delivery, which can impact customer satisfaction.

June 27, 2025

Major Ports in India: Key Hubs for Global Trade

Major Ports in India: Key Hubs for Global Trade

One of the key aspects that facilitate global trade is ports. They are the key hubs for global trade. India has a vast coastline of over 7500 km, and hence, numerous seaports are crucial hubs for shipping and logistics. These ports are used to export and import goods and materials from around the world. In this article, we will explore the top 13 major ports in India and their roles in improving the country's economy.How Many Major Ports in India?India has 13 major ports that the government manages; they are under the Ministry of Shipping and Waterways.List of Major ports in IndiaBelow is a complete list of major ports in India1. Mumbai Port, MaharashtraSource - orbitshubLocated on the western coast of India, Mumbai Port is a central Gateway that handles millions of tons of cargo every year. It handles 55% of the total cargo that is traded through India. In 2023-24, the port handled 67.26 million tons of cargo. Mumbai Port is an essential part of India's trade infrastructure that not only exports and imports goods, petroleum, textiles, and machinery but also handles passenger traffic. In 2023, 182,600 passengers were handled at the Mumbai Port. 2. Chennai PortChennai airport is India's most prominent port and is vital to the country's international trade. It is equipped with state-of-the-art infrastructure, allowing it to accommodate large vessels. With strong connectivity, the Chennai port is the ideal choice for global trade, contributing approximately 18.6% of the total container volume. It can handle 2.5 million TEUs annually. In 2023-24, it handled 46.76 million tons of cargo. 3. Cochin Port, Kerala Located on the southern western coast of India, the Cochin port plays a vital role in the county's trade via waterways. Its strategic location makes it ideal for the trade of tea, spices, and petroleum. The port has a capacity of 32,03 million metric tonnes and can also handle 0.6 million units of TEU traffic.4. Visakhapatnam Port, Andhra PradeshVisakhapatnam port is one of the busiest ports on India's eastern coast. In 2022-23, the port managed approximately 81.09 tonnes of cargo, making it the third-largest port in India. According to recent reports, the reported annual container traffic is about 3.95 million TEUs. Also, according to the Container Port Performance Index 2023, Visakhapatnam port ranks 20th globally. Suggested - Top 10 Shipping Companies in Vizag (Visakhapatnam)5. Kandla Port, Gujaratsource - orbitshubLocated on the Gulf of Kutch, the Kandla Port of Gujarat is mainly known for exporting salt and textiles. It is also prominently known for trading edible oils, fertiliser and petroleum products. The port has an annual capacity of 2.5 million metric tons of cargo and can handle a traffic of 0.7 million units. TEU.6. New Mangalore port, KarnatakaLocated on the southwest coast of India, the New Mangalore Port is another significant source of exports and imports. In 2022-23, the port handled 34.119 million tons of cargo. New Mangalore is known for exporting commodities like iron, petroleum products, and coal.7. Shyama Prasad Mukherjee Port Trust, West Bengal Source - telegraphindiaShyama Prasad Mukherjee Port Trust, also known as Kolkata Port Trust, is located in eastern India. In 2022-23, the port handled over 92.34 million tons of cargo. It has a processing capacity of 107,000 TEUs and handles cargo such as agricultural products, INO, and coal. 8. Paradip Port, OdishaParadip Port is a vital hub for India's trade via waterways. Located on the eastern coast of India, it is mainly used for exporting coal, fertilisers and iron ore. In 2022, the port processed 116.1 million metric tons of cargo and has a capacity of 10,020 TEUs. 9. Ennore Port, Tamil NaduEnnore Port is also known as Kamarajar Port. In 2022, it handled 4.29 million tons of cargo and 61,515 TEUs. Over the past few years, Ennore Port has increased its handling capacity, thereby enhancing its role as a hub for India's maritime trade.10 Port Blair, Andaman and Nicobar IslandsPort Blair is a prominent port that handles cargo such as cement, food, grains, and petroleum products. It is vital to the local economy as it maintains a supply chain for the island and the nearby regions. In 2023, the cargo traffic on Port Blair was approximately 1.88 million metric tons.11. Jawaharlal Nehru Port (JNPT), MaharashtraSource - wikimediaLocated in Mumbai, Jawaharlal Nehru Port (JNPT) is one of the largest container ports in India. It handles over 50% of the country's cargo. In 2024, JNPT handled 4.74 million TEUs, a growth of 13.38% compared to the previous year. Moreover, the port handled a cargo volume of 60.05 million tons. 12. Mundra, Port, GujaratThe report is one of the busiest sports in India. The port usually handles containers and cargo and transports liquid, bulk, coal, and other materials. In 2023, the port handled 7.4 million TEUs. In the years 2024-25, Mundra Port handled 17.6 million metric tons of cargo. The capacity of Mundra Port is constantly increasing, enhancing India's economic growth. 13. Mormugao, GoaMormugao Port is famous for handling bulk cargo like iron ore. In 2022-23, the port handled 17.68 million tonnes of cargo, and in 2023, it managed 0.003 million TEUs. Role of Major Ports in IndiaPorts in India are the backbone of the country's trade infrastructure. Handles over 60% of India's total cargo. Hence, it is very essential for international trade facilitation.Helps in improving the GDP by contributing significantly and supporting industries like mining, agriculture, and manufacturing.Ports have been generating employment opportunities for millions of people.Ports facilitate the transportation of goods and offer excellent connectivity through waterways.Suggested - Hub and Spoke Distribution ModelHave Seamless Shipping Operation with WareIQ's Smart Shipping SolutionsWareIQ's smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom branded tracking pages and notifications to enhance customer experienceAlso check - A Quick Guide to the EXIM Policy of India and Its ImportanceConclusionAll the major ports in India are not just infrastructural development for the country but also the backbone of the country for facilitating international trade. In all, 13 significant ports connect India to the global market, improving economic development and supporting industrial growth in the country. Each year, these ports are handling more and more cargo, resulting in increased competition. Initiatives like the Sagarmala project and the privatisation steps ensure that there is more scope for ports in India. Indian ports will always continue to be key hubs for global trade.Suggested read - How to export from IndiaFAQs About Major Ports in IndiaWhich is the oldest port in India?The oldest port in India is the Kolkata Port, which was established in 1870.What is the difference between a major port and a minor port?The central government governs major ports, while minor ports usually fall under the jurisdiction of state governments or even private companies.What type of cargo do the Indian ports handle?Indian ports deal in the transportation of cargo like crude oil, coal, fertilisers, agricultural products, and automobiles.Which is the largest port in India?Jawaharlal Nehru Port (JNPT) is the largest port in India.Which port is well-known for handling iron or exports?Paradip Port and Mormugao Port are well-known for exporting iron ore.

June 26, 2025

Logistics Duties and Responsibilities in E-commerce

Logistics Duties and Responsibilities in E-commerce

The e-commerce boom in India is changing the way we shop, with online retail sales expected to reach $120 billion by 2026, according to 2023 research by the India Brand Equity Foundation (IBEF). Behind every flawless delivery is a well-oiled logistics mechanism that ensures things move from warehouses to doorsteps. For Indian firms, understanding logistical roles and obligations in e-commerce is critical for meeting customer expectations and being competitive. This blog simplifies the major Logistics Duties and Responsibilities in e-commerce logistics, providing valuable insights for entrepreneurs, students, and small business owners around India. Let's look at how logistics drives online commerce with clarity and real-world examples.What is E-commerce Logistics?E-commerce logistics entails planning, managing, and carrying out the transit and storage of items for online firms. It includes everything from product storage in warehouses to delivery to clients. Unlike traditional logistics, e-commerce logistics prioritises speed, accuracy, and customer happiness, as online customers anticipate timely deliveries and real-time updates.E-commerce logistics in India are crucial due to the country's huge territory and diverse customer base. Companies must negotiate densely populated cities like Mumbai, isolated villages in Assam, and everything in between. Logistics personnel manage inventory, process orders, arrange transportation, and handle refunds, ensuring that things arrive on time.Logistics Duties and Responsibilities in E-commerceLogistics in e-commerce is like the foundation of a thriving online store. Each activity is critical to ensuring efficient operations and client satisfaction. The following are the primary duties and responsibilities:Inventory ManagementLogistics staff manage stock levels to ensure that products are available without overstocking. They forecast demand, do frequent audits, and communicate with suppliers. For example, a Delhi-based fashion firm monitors inventory to ensure that popular kurtas do not run out during seasonal sales.Order ProcessingWhen a consumer puts in an order, logistics workers validate it, confirm product availability, and prepare it for shipment. This entails selecting things from the warehouse, carefully packing them, and making shipping labels. Accuracy is essential to avoid sending the incorrect goods to a customer in Bengaluru.Transportation & RoutesLogistics teams plan the most efficient way to carry goods, selecting cost-effective carriers and optimising routes. They monitor shipments and guarantee compliance with regulations. For example, transporting electronics from a Gurugram facility to Chennai necessitates meticulous route planning to meet delivery schedules.Warehouse and StorageWarehouses keep things safe before they are dispatched. Logistics teams manage storage space, keep inventory records, and guarantee that commodities are safe. A Kolkata warehouse may hold spices, garments, and gadgets, each of which needs specific conditions to function properly.Reverse LogisticsReverse logistics is a crucial aspect of e-commerce. Teams evaluate returned items, inspect them for quality, and determine whether they may be replenished or require repairs. A consumer in Jaipur returns a damaged phone and relies on reverse logistics to ensure a smooth refund or replacement.Customer Service SupportConsumer Service Support Logistics personnel frequently answer consumer enquiries concerning order status or delivery delays. They provide real-time tracking information and troubleshoot issues to ensure a great experience. A logistics crew, for example, may assist a customer in Pune in tracking down a delayed item during the rainy season.These responsibilities combine to offer a flawless buying experience, from clicking "buy now" to receiving the product.How a Logistics Company Works in E-commerce?A logistics company serves as a reliable partner for e-commerce businesses, conducting the heavy lifting of supply chain duties. According to Statista, India's logistics market is predicted to increase at a compound annual growth rate of 8.8% between 2024 and 2029, fuelled by e-commerce demand. Here's how a logistics firm works:Receiving and storing goods: Products come in the company's warehouse and are checked, sorted, and stored. For example, a logistics company in Hyderabad could store mobile phones and sarees for an online marketplace.Order Processing: When an order arrives, the logistics team selects the item, securely packs it, and labels it for shipment. They ensure that the right product reaches the buyer.Transportation: The team decides on the best form of transportation (truck, bike, or plane) and plans routes accordingly. They track shipments to prevent delays, particularly for time-sensitive supplies to cities such as Ahmedabad.Delivery: The logistics company manages last-mile delivery to ensure that things arrive at clients' doorsteps. In rural locations such as Rajasthan, this may entail local couriers.Returns Management: If a customer returns an item, the logistics crew will collect it, check it, and process it for restocking or disposal.Technology plays an important part, with technologies such as warehouse management systems and real-time tracking that ensure efficiency. This technique allows e-commerce firms to focus on selling while logistics professionals handle delivery.Why Logistics Duties Matter in E-commerce?Logistics duties have a direct impact on an internet business's success. Here's why they're important for Indian e-commerce.Customer Satisfaction: Prompt and precise deliveries foster confidence. A consumer in Chennai expects to receive their item within days, not weeks.Cost Efficiency: Smart inventory and transportation planning lowers costs, allowing small firms in Surat to compete with larger competitors.Scalability: Efficient logistics enable firms to expand by handling more orders during peak sales periods such as Diwali without confusion.Competitive Advantage: Offering same-day delivery or easy returns, as witnessed in major cities such as Delhi, draws repeat clients.Poor logistics can cause delays, damaged goods, and exorbitant prices, pushing customers away. Strong logistics enable businesses to thrive in India's fast-paced e-commerce industry.Simplify Your E-commerce Logistics Using WareIQ's SolutionsAt WareIQ, we understand the challenges of e-commerce logistics in India. Our Y-Combinator-backed platform simplifies these duties, helping brands deliver faster and smarter. Whether you are a startup in Bengaluru or a growing brand in Mumbai, WareIQ’s tech-driven solutions make logistics hassle-free.Nationwide Fulfilment: Store products in over 12 cities, reaching 27,000+ pin codes with quick delivery.AI-Powered Inventory: Our Inventory LogIQ tool optimises stock levels, ensuring you never miss a sale or overstock.Multi-Channel Management: Manage orders across Amazon, Flipkart, and your Shopify store from one dashboard.Seamless Returns: Handle returns efficiently with automated processes, keeping customers happy.With WareIQ, you can focus on growing your brand while we ensure every order reaches its destination on time.ConclusionLogistics tasks and obligations are at the heart of e-commerce in India, transforming internet purchases into delivered products. These activities, which range from inventory management to delivery coordination, ensure that customers keep returning. For Indian firms, understanding logistics results in lower costs, happier customers, and a stronger market presence. With systems like WareIQ, e-commerce businesses can simplify these tasks and concentrate on what they do best: selling amazing products. Whether you're a small vendor or a large brand, efficient logistics are critical to success in India's thriving online industry.Frequently Asked QuestionsWhat are the responsibilities of the logistics department in e-commerce?To ensure flawless deliveries, the logistics department organises inventory, processes orders, plans transportation, controls warehousing, handles returns, and provides customer service support.How does a logistics company operate in e-commerce?A logistics company stores things, processes orders, arranges transportation, distributes goods, and handles returns while utilising technology for efficiency and tracking.What is the purpose of a logistics company?A logistics company prepares and executes the movement and storage of goods, ensuring that e-commerce businesses receive timely and cost-effective delivery.What are the three main functions of logistics?Inventory management, transportation, and warehousing are the three main operations that ensure products are delivered to customers efficiently.What are the seven functions of logistics?The seven functions are inventory management, order processing, transportation, warehousing, reverse logistics, customer service, and demand forecasting.How do logistics businesses make money?Logistics companies make money by charging fees for warehousing, transportation, order processing, and value-added services such as packaging and returns handling.

June 25, 2025

Key Functions of Warehousing in Supply Chain

Key Functions of Warehousing in Supply Chain

Warehousing is more than just storing goods. It plays a vital role in supply chain management. In a cutthroat market with numerous competitors, effective warehouse management is necessary not only for the smooth flow of goods but also to improve the supply chain by reducing costs and improving customer satisfaction. In this article, we will discuss some of the key functions of warehousing in a supply chain.What Is Warehousing?Warehousing, in simple terms, means storing goods in a specific location. It helps businesses store a large quantity of inventory based on demand. The required quantity of goods is then supplied via the warehouse. So, a warehouse is a central hub where goods are received, stored, and then dispatched according to business requirements. Key Functions of a Warehouse in the Supply ChainThe different functions of warehousing ultimately support businesses and help in the smooth flow of goods, thus ensuring robust supply chain management. The different functions and features of warehousing are explained below:Efficient Storage of GoodsWhether it is raw materials, finished products, or fragile and perishable items, the warehouse is the perfect place for bulk storage. Warehouses are designed to store inventory in a structured and efficient manner. Proper warehouse storage aims to minimise the risk of theft, damage, or even deterioration of certain goods. For instance, if perishable goods are stored in a warehouse, the temperature must be controlled. Likewise, if food items are stored in the warehouse, the warehouse must have the necessary licenses and approvals to ensure food safety. Consolidation and Break-BulkWarehousing is a central point for storing and dispatching goods. It helps consolidate goods from different sources, break them down into smaller quantities, and distribute them to different destinations.Consolidation involves combining goods from multiple suppliers and shipping them in one shipment. Break-bulk involves splitting huge shipments into smaller units that are easy to handle and distribute to multiple supply points.Inventory ManagementInventory management is one of the core functions of warehousing, which efficiently facilitates supply chain management. Warehousing helps track stock levels, manage reorder points, and prevent stockouts or even overstocking of goods.Thanks to automated warehouse management systems, businesses can now access real-time inventory data without physically visiting the warehouse.SecurityThe need for warehousing security is quite essential for supply chain management. A proper warehouse helps prevent material spoilage and unnecessary delays. With a proper security system, the goods in the warehouse are safe from theft.Order FulfilmentInstead of having multiple channels at different locations for picking, packing, and shipping the goods, they can be centralised in a single warehouse. It will help fulfil orders faster and ensure timely delivery to customers, improving customer satisfaction. Warehousing also simplifies inventory distribution and sorting.Reduced RisksSince warehouses have a large capacity for good storage, they help mitigate the risks of price fluctuations in the future. Suppliers can stock up the goods when the cost of the goods goes down.Getting insurance is an integral part of efficient warehousing. Hence, compensation can be received in case of fire, theft, or any other damage, reducing the risk of monetary loss.Value-Added ServicesSimplified warehousing also includes services like labelling, product customisation, and assembly to meet customer and regulatory requirements and facilitate the supply chain process. A warehouse houses multiple activities apart from storage, which significantly enhances the value of the entire supply management process and quality control in the supply chain.Seasonal StorageSince product demand differs from peak to off-peak season, it is essential to have a place to store all the goods according to seasonal demands. Warehouses are apt for storing goods for a long time, thus ensuring their availability whenever required.Stabilisation of PricesWhen demand is low, goods can be stored in warehouses and released when demand is high. It can significantly stabilise the market price by balancing the demand-supply relationship.How Does a Warehouse Function?Different processes take place, from when a shipment is received in a warehouse to when a shipment is dispatched. Below is a step-by-step warehouse activities:The first process is when a shipment of goods arrives at the warehouse. Then, it is checked and verified against purchase orders to ensure that the shipment meets the quality and quantity standards.Next, depending on the space, utilisation, and retrieval of the shipment, goods are systematically arranged. It is one of the core warehouse activities.Optimum storage conditions are maintained to ensure that the goods are in proper condition. The temperature and pressure for fragile or perishable goods are controlled.Next, as the order is placed, specific items are retrieved from storage.The items are then appropriately packed to ensure their safety for transportation. Labelling and documentation are also part of this process.Goods are dispatched and handed over as designated.Also check - Logistics Duties and Responsibilities in E-commerceWhy is Warehousing Important?Below are the main reasons why warehousing is necessary:Warehousing ensures product availability at all times.Warehouses streamline logistics operations, thereby reducing transit time.Bulk storage can minimise transportation costs.As warehousing ensures faster delivery, it helps to fulfil orders faster.The fast delivery and all-time availability of goods result in enhanced customer satisfaction.Optimise Inventory Management with Warehousing and Fulfilment Solutions from WareIQ.WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfillment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)Our solution offers:Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareI and shipping partners for last-mile delivery across 27000+ pin codesMulti-Channel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performanceInventory LogIQ: AI-led multi-channel inventory planning solution to minimize stockouts and automate replenishmentLeverage a tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claim rejections.A host of seller enablement and support—dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.Learn Why Traditional eCommerce Warehousing Fails in Quick CommerceConclusionWarehousing is one of the most critical processes in supply chain management. Its several functions, such as storing goods, consolidating, breaking up, order fulfilment, risk mitigation, price stabilisation, etc., lead to smooth inventory management and efficient logistics. With the availability of new technologies, warehousing processes are becoming more efficient and environmentally friendly. By knowing the key functions and importance of warehousing, businesses can optimise their supply chain management for substantial growth.FAQs about Functions of Warehousing in Supply ChainWhat are the different types of warehouses?There are different types of warehouses, such as Public Warehouse, Private Warehouse, Bonded Warehouse, Automated Warehouse, and Climate-controlled Warehouse.How does warehousing help in saving costs?Warehousing involves storing goods in bulk, which substantially minimises transportation costs and helps prevent losses during stockouts.What are some of the emerging trends in warehousing?Some of the latest trends making warehousing more efficient are the adoption of robotics, green housing, micro fulfilment centres, and AI-driven inventory management.What are the challenges faced in warehousing?Some of the common challenges that businesses face in the warehouse are space constraints, inventory inaccuracy, and higher operational costs.What is the primary function of a warehouse?The primary function of a warehouse is to store the goods, maintaining their safety and availability for an efficient delivery.

June 24, 2025

Amazon Prime Day 2025: Inventory Planning Tips to Avoid Stockouts

Amazon Prime Day 2025: Inventory Planning Tips to Avoid Stockouts

Behold! One of the most awaited times of the year is just around the corner. Yes, we are referring to the Amazon Prime Day sale 2025, scheduled to take place from July 8th to July 11th this year. To date, this is the longest Prime Day, spanning four days. According to Adobe Analytics, in 2024, Prime Day generated over $14.2 billion in global sales, representing a $3 billion increase from the previous year. This staggering number indicates a surge in demand due to Amazon Prime Days offers, and this could also deplete your inventory in just a few hours during the sale. A stockout in such circumstances can have adverse effects, as it will result in lost sales, a drop in your ranking, and a decline in long-term customer trust. It is, therefore, necessary to have proper inventory management and planning strategies in place to keep your virtual shelves stocked and the revenue flowing. Let us look at different strategies with which you can prevent stockouts on this prime day!What is Amazon Prime Day Sale 2025?Amazon Prime Day Sale 2025 is one of the biggest annual sales events on Amazon, specifically designed for Prime members. The first Amazon Prime Day took place in 2015, marking Amazon's 20th anniversary. People with Prime membership get good deals on Amazon Prime Day on a wide variety of products. For sellers, the Amazon Prime Day sale is a great opportunity, as the sales are quite high. It is more than a sales event; it is the time when a brand can gain thousands of customers that will come back to them again. Moreover, it is also a good time to move overstocked products. Additionally, there are various tools that will help you gather data on various aspects, such as customer behaviour and product performance, and sometimes even understand your competitors' marketing strategies.Important Dates for Prime Day 2025Knowing the Prime Day 2025 dates is important for sellers. For starters, this year, the Amazon Prime Day sale is for 4 days: from July 8th to July 11th. It is an opportunity for the seller to have a strong brand presence, increase visibility, drive more sales, and attract thousands of shoppers. For customers, the Amazon Prime Day sale starts on July 8th and ends on July 11th, but for sellers, it's not just four days; preparation and strategic planning must begin months in advance. Let us look at some dates that are critical for sellers to make the most of Amazon Prime Day 2025:DateDeadline / EventDescriptionMarch 18Deal Scheduling OpensBrands can begin scheduling Prime-Exclusive Best Deals and Lightning Deals.May 5First Day to Submit Prime-Exclusive Price DiscountsSellers may start submitting Prime-exclusive price discounts; submissions close 12 hours before Prime Day end time.May 23Final Deadline to Schedule Lightning & Best DealsLast day to set up Lightning Deals and Prime-Exclusive Best Deals before Prime Day.June 6Deal Scheduling ClosureAmazon cuts off scheduling for all deal types (Best & Lightning) for Prime DayJune 9Minimal Shipment Splits Inventory ArrivalInventory shipped via minimal splits must arrive at fulfilment centres.June 18Amazon-Optimized Shipment Splits Inventory ArrivalLast date for inventory using Amazon-optimised splits to be checked into Amazon FCs.Why Does Stockout Prevention Matter?Amazon Prime Day 2025 is not just an average sales event; it is a high-stakes and high-velocity marketplace where stockouts can significantly impact both your sales and brand reputation. Here are some reasons why stockout prevention is critical for sellers for the upcoming Amazon Prime Day 2025:Each minute that your product is out of stock is a lost opportunity to attract potential customers. Considering that independent sellers sold more than 200 million items during Amazon Prime Day sale offers in 2025, if your inventory runs out mid-event, you may forfeit your chance to tap into this huge demand.Stockouts can hurt your Buy Box eligibility and organic ranking. Also, the ASIN drops in search results. Additionally, recovery after an event can be slow and expensive due to the loss of momentum.Whether you are running a social media ad or Amazon PPC, stockouts will result in a waste of your marketing funds. It will eventually impact your ROI.Stockouts also hamper customer trust and brand loyalty. It can lead to negative reviews, cart abandonment, and also long-term loyalty loss. If a seller uses Fulfilled by Merchant (FBM), stockouts and delivery failures can lead to several account performance issues. In some cases, it can also lead to account suspension.Avoid Stockouts: Amazon Prime Day Sale Inventory StrategiesAvoiding stockouts is quite essential for the upcoming Amazon Prime Day 2025. It is achievable via strategic forecasting, apt operational control, and, more importantly, proactive logistics. Here are the Amazon Prime Day sale inventory strategies which will greatly assist sellers and ensure that they are stocked up throughout the event:1. Demand ForecastingForecasting demand is an imminent step in preparing for the Amazon Prime Day Sale. You can analyse past Prime Day sales along with the seasonal trends and real-time consumer behaviour data to get an idea about future demand and decide on products accordingly.2. Place Purchase OrdersIt is essential to avoid missing shipping windows, especially for imported goods; hence, do not delay ordering from suppliers. You can place a purchase order about 8 to 10 weeks before the Amazon Prime Day sale 2025, considering the lead times for production, customs clearance, inspection, and final-mile delivery.3. Work According to Amazon's Shipping DeadlinesAmazon has deadlines in place for inventory to arrive at fulfilment centres. Ensure that you do not miss this window. Missing the window can result in the inventory not being available for the event. Hence, it is better to ship in advance and monitor the FC check-in progress using Amazon's shipping tracking tools.4. Real-time Inventory Level MonitoringIt is ideal to have a tracking dashboard to monitor the stock levels throughout the event. Moreover, you can also set alerts for SKUs that are fast-moving so that in case there is a chance of stock out, you can replenish it quickly.You can use Amazon's restock inventory tool, as well as inventory health reports.For products that are low in stock, you can pause ads to avoid over-selling and losing the Buy Box.5. Fulfilment Channels Diversification.Although FBA is efficient, it can be risky to rely completely on it, especially during high-traffic events. You can also have fulfilment done by the merchant (FBM) as a backup option. It will help you to continue selling even if the FBA inventory is low.6. Relocation of Ads and Promotion.Depending upon these stock levels, you can reassign your advertisement budget to well-stocked ASINs. You can monitor PPC performance along with inventory.You can temporarily pause Lightning Deals for low inventory ASINs. 7. Dry Run Before Prime DayYou can opt to run a simulated inventory surge scenario around two weeks before Amazon Prime Day. It will help you identify gaps in supplier responsiveness, fulfilment readiness, and ad-spend optimisation.8. Have a Backup PlanDisruptions can occur at any time, even if you have strategically planned everything. Hence, it is essential to have a backup plan in place in case you are running low on a high-demand product. Have an emergency contact list for suppliers.FBM listings ready to activateBudget reassignmentPre-approved ad pauseActivities that Seller Must PerformSince Amazon Prime Day is quite close, it is essential to have a plan of action ready based on past results, demand forecasts, and other relevant aspects. Here is an example of how the seller can plan their days leading up to Prime Day. Date RangeTask/ActivityDetailsMay 15–20Forecast DemandAnalyze 2024 Prime Day data, identify hero ASINsMay 20–31Order InventoryPlace PO with buffer stock (50–100% over average demand)June 1–10Create Campaign AssetsBanners, ad copy, A+ Content, Lightning Deal bannersJune 5–15Submit Lightning Deals / CouponsFinal deadline: ~3–4 weeks before Prime DayJune 10–28Ship to FBAEnsure inventory arrives by Amazon's cut-off (~June 18)June 25Audit FBA Stock + Activate AdsCheck inventory status, set campaign budgets and bidsJuly 1–5Teaser Campaigns / Email ListsSend countdown emails and warm up retargeting audiencesJuly 7Final Testing / Backup SystemsCheck pricing, ad placement, FBM backups readyJuly 8–11Prime Day Campaign LiveMonitor stock levels, adjust PPC, shift traffic based on availabilityJuly 12–15Post-Event Restock OrdersRestock hot ASINs ASAP for Q3 & Early Access Prime Day (if applicable)July 15–20Performance AuditAnalyze results, returns, stockouts, ad spend, and prepare insights docBe Prime Day Ready With Alternate FBA Solutions By WareIQWareIQ has helped eCommerce brands across categories overcome these challenges using its on-demand full-stack fulfilment solution that includes:Flexible capacity fulfilment centres across 12+ cities across India – ramp up or down storage space as per order surges during the festive sales season; store inventory closest to customers to increase regional utilisation.Get Seller Flex, FAssured, and other marketplace benefits with us, as our warehouses are 100% compliant with marketplace seller programs & SLAsMinimise inventory holding costs by fulfilling orders for all channels - your website & multiple marketplaces - from one common inventory poolGet access to a central tech platform that can integrate with all your sales channels, ERP, WMS, etc., to manage all your orders, inventory, and shipments.ConclusionAmazon Prime Day Sale 2025 is a brand-defining moment for sellers. This can shape your performance for the rest of the year. Considering the competitive and dynamic marketplace, it is essential to maintain stock availability during the event. Avoiding stockouts is not just about keeping your digital shelves full; it is more about retaining buy-box dominance, maximising customer satisfaction, and building momentum that will carry through Q3 and also have a great sale the next holiday season. You need to be proactive for Prime Day. It will be immensely helpful to forecast with precision, optimise logistics timelines, stay alert for stockouts, and have backup plans ready. Strategic planning will yield positive results, and sellers cannot just ride the wave but lead it.FAQsIs overstocking a good strategy to avoid stockouts?Not necessarily. Overstocking can lead to long-term FBA storage issues and also reduce IPI scores. Accurate forecasting can help with a well-calculated buffer that can be used instead of overstocking.How much extra inventory should be carried for Prime Day 2025?As a general rule, it is best to carry 52% to 100% more inventory for top-performing ASINs.Should I run the lightning deals on products with low stock?No, it is not ideal to run a lighting deal on a low-stock ASIN, as it increases the risk of disappointing customers. It will not only damage your seller metrics but also lead to you losing the Buy Box.Is Amazon Prime Day only for Prime members?Yes, the Amazon Prime Day sale is exclusively for Amazon Prime members.

June 20, 2025

Letter of Undertaking in Shipping: What It Is and When to Use It?

Letter of Undertaking in Shipping: What It Is and When to Use It?

Imagine being an exporter, ready to send your products to global markets, only to find yourself tangled in tax payments and blocked funds. The good news? There’s a simple solution, one that saves you time, money, and a lot of headaches: the Letter of Undertaking (LUT).This legal document is a lifeline that enables companies to export products and services without having to pay the Integrated GST (IGST) upfront. It is more than just a compliance form. LUTs increase cash flow, streamline operations, and maintain a company's competitiveness in global markets by doing away with the requirement for tax refunds.This blog covers all the essentials you need to know about LUTs – from what they are and how they’re used to their benefits and the step-by-step filing process. You’ll also learn how to steer clear of common mistakes and find expert guidance to ensure hassle-free export operations. Whether you’re new to exporting or a seasoned professional, this guide will help you unlock the advantages of GST-free exports with ease.What Is a Letter of Undertaking (LUT)?A Letter of Undertaking is a formal declaration by a business or individual to fulfil certain obligations or adhere to legal requirements under GST law. Think of it as a legally binding promise sealed with accountability.Under the Central Goods and Services Tax (CGST) Act, 2017, LUTs allow businesses to export goods or services without paying IGST upfront. Instead of blocking working capital in tax payments, exporters can use that liquidity to grow their operations.Why Is a Letter of Undertaking Important?For Indian exporters, a Letter of Undertaking (LUT) becomes crucial because it automates processes and saves expenses. Here's why it's so important:Export Without Upfront IGST: An LUT allows businesses to ship goods or provide services to international markets or Special Economic Zones (SEZs) without having to pay IGST upfront, reducing immediate financial strain.Improved Capital Circulation: Businesses can guarantee smoother cash flow and maintain unrestricted, well-funded operations by removing funds between tax payments and return expectations.Reduced Compliance: By filing a LUT, the export procedure has been greatly simplified and less time, energy, and paperwork are required for tax administration.Expanded Global Competence: By avoiding delays and tax-related challenges, exporters can provide their goods at lower rates to overseas customers and make their products more popular in global markets. Letter of Undertaking: Meaning and Legal FrameworkThe meaning of the letter of undertaking lies in its legal assurance. It’s a pledge made by exporters to the GST department, stating they will comply with all GST regulations while exporting goods without making upfront IGST payments. Essentially, it’s a trust-building mechanism between the government and businesses.Is a Letter of Undertaking Legally Binding?Yes! While an LUT isn’t a traditional contract, it is legally enforceable under GST law. Failing to meet the terms of an LUT—such as fulfilling export obligations or submitting required documents—can result in penalties or revocation of LUT privileges.When to Use a Letter of UndertakingThe shipping and logistics industry relies heavily on LUTs for seamless global trade. Here are some scenarios where an LUT is indispensable:Export of Goods or Services Without IGST Payment:Businesses shipping products outside India or to SEZs require an LUT to avoid upfront tax payments.Zero-Rated Supplies Under GST:A LUT allows exporters to make zero-rated supplies, meaning goods or services are taxed at 0%.E-Commerce Exports:Small businesses and e-commerce exporters benefit significantly from LUTs, as they reduce tax compliance burdens and free up working capital.Freight Forwarding and Logistics Companies:LUTs streamline operations for logistics firms involved in international shipping, reducing operational costs.Benefits of Filing a Letter of Undertaking in GSTIf you’re still wondering whether filing an LUT is worth the effort, here’s why it’s a no-brainer:No IGST Payments:Filing an LUT eliminates the need for upfront IGST payments, freeing up funds for other business operations.Enhanced Cash Flow:Exporters don’t need to wait for GST refunds, ensuring better liquidity and smoother operations.Simplified Processes:The LUT filing process under GST is straightforward, reducing administrative burdens.Competitive Advantage:Avoiding tax-related delays helps exporters maintain competitive pricing in global markets.Operational Focus:Exporters can spend less time on tax refunds and more on scaling their business.Related - How to export from IndiaHow to File a Letter of Undertaking in GST: Step-by-Step GuideFiling an LUT might sound intimidating, but it’s actually a simple and straightforward process:Log in to the GST Portal:Visit the GST portal and log in with your credentials.Navigate to User Services:Go to the “Services” tab, select “User Services,” and click on “Furnish Letter of Undertaking (LUT).”Select Financial Year:Choose the financial year for which you’re filing the LUT.Upload Previous LUTs (If Applicable):If you’ve filed an LUT in prior years, upload the previous certificate as part of the application process.Fill in the Form:Enter the required details, including GSTIN, business name, and the names and addresses of two witnesses.Preview and Verify:Review the application form to ensure accuracy.Sign and Submit:Use a Digital Signature Certificate (DSC) for private companies or an Electronic Verification Code (EVC) for proprietorships.Download Acknowledgment:Once submitted, download the acknowledgement form for your records.Documents Required for Filing a Letter of UndertakingTo file an LUT, the following documents are typically required:GST registration certificatePAN card of the businessIEC (Import Export Code) certificateThe Aadhaar card of the authorised signatoryCancelled cheque of the exporter’s accountPrevious LUT certificate (if applicable)Power of attorney or authorisation letter for the signatoryDifference Between a Letter of Credit and a Letter of UndertakingPeople often confuse an LUT with a Letter of Credit (LC). Here’s a quick comparison:AspectLetter of Undertaking (LUT)Letter of Credit (LC)PurposeAvoid IGST payment for exportsGuarantee payment to sellersIssued ByExporterBankLegally BindingYesYesUse CaseGST compliance for exportsTrade transactions between buyer/sellerCommon Mistakes to Avoid When Filing a LUTEven a small oversight can lead to complications. Here are some mistakes to steer clear of:Submitting Incorrect Information: Double-check details like GSTIN, names, and witness information.Missed Deadlines: LUTs are valid for one financial year. Make sure to file a fresh LUT on time.Failure to Comply: Not fulfilling the obligations under an LUT can lead to revocation of privileges.Pro Tips for Smooth FilingAlways maintain a digital copy of LUT acknowledgement forms for audits and future reference.Update the authorised signatories annually to avoid delays in approvals.Work with GST experts for error-free applications and compliance.Optimise Your E-Commerce Exports with WareIQ’s Tech-Driven Fulfillment SolutionsAs an exporter or e-commerce seller, managing logistics, inventory, and compliance alongside navigating GST regulations like filing a Letter of Undertaking (LUT) can feel overwhelming. That’s where WareIQ, a Y-Combinator-backed e-commerce fulfilment platform, steps in to streamline your operations and help you focus on scaling your business.WareIQ offers a tech-enabled, full-stack fulfilment solution tailored to meet the unique needs of e-commerce brands. Whether you sell through D2C platforms like Shopify and WooCommerce or on marketplaces like Amazon, Flipkart, or Myntra, WareIQ’s multi-channel fulfilment platform seamlessly integrates with your storefronts, ERP, or WMS systems, enabling centralised management of orders and inventory.Key features include:Pan-India Fulfillment Network: Operate through WareIQ’s fulfilment centres in 12+ cities, providing Seller Flex and FAssured compliance for faster delivery across 27,000+ pin codes.AI-Driven Inventory Management: Use WareIQ’s Inventory LogIQ to minimise stockouts, automate replenishment, and optimise inventory placement closest to your customers.Tech-Enabled Returns Management: Handle returns seamlessly with HD media evidence of returned goods, ensuring marketplace claims are not rejected.Seller Enablement Services: Get support for GST registrations, catalogue listings, APOB/PPOB registrations, and more, enabling effortless compliance and hassle-free operations.With WareIQ, you don’t just ensure smooth logistics—you gain the competitive advantage of faster deliveries, optimised inventory management, and compliance support so you can scale your export business and stay ahead in the global market. For exporters leveraging LUTs to save on IGST, WareIQ ensures the backend logistics match your financial efficiency.Also check - What Is a Letter of Credit? A Key in International PaymentsConclusionThe Letter of Undertaking (LUT) is a game-changer for exporters, enabling seamless global trade without the financial burden of upfront IGST payments. By streamlining tax compliance and freeing up cash flow, LUTs empower businesses to focus on growth, competitiveness, and operational efficiency. Whether you're an experienced exporter or just starting, understanding and utilising LUTs is crucial to maximising your potential in the global market. Combined with smart logistics solutions like WareIQ, exporters can ensure smooth operations, faster deliveries, and compliance, setting the stage for long-term success in international trade.Suggested - Bill of Entry Status: How to Check and What It Means in Customs?FAQs About Letter of UndertakingWhat is the validity of an LUT?An LUT is valid for one financial year. A fresh LUT must be filed every year.Can LUT filing be done offline?No, the process is entirely online through the GST portal.What happens if I fail to comply with an LUT?Non-compliance can lead to penalties and revocation of privileges for tax-free exports.

June 19, 2025

Net Weight vs Gross Weight: Key Differences Explained

Net Weight vs Gross Weight: Key Differences Explained

Net weight and gross weight sound similar and are often confusing. These two terms are used widely in weight measurement and significantly impact various processes such as shipping, logistics, and pricing. However, the meaning and application of these terms are very different. Understanding the difference is essential, especially when it comes to shipping. In this article, we will explore net weight vs gross weight and how they can be calculated. What Is Net Weight and Gross Weight?What Is Net Weight?Net weight refers to the weight of the product itself, excluding any packaging. The weight of containers or boxes that the product comes in is not considered while calculating net weight. It represents the quantity that a consumer can use. Some examples to understand net weight are as follows:A bag of potatoes weighing 4 kg net weight means that the potatoes weigh 5 kg. The weight of the bag is not counted.A 1-litre bottle of milk represents that it contains 1 litre of milk. The bottle's weight is not counted.What Is Gross Weight?Gross weight means the total weight, including the packaging or any other additional content with the packaging, like a straw or spoon. It is the combined weight that is shipped or sold. Some examples of gross weight are explained below:A box of oranges weighing 5 kg gross weight represents the complete weight, including the weight of the box and other packing material.A bottle of orange juice weighing 1-litre gross weight means the complete weight, including the bottle and the straw that comes with it.What Is the Difference Between Net and Gross Weight?The main difference between gross and net weight is that the calculation of net weight excludes packaging, while the calculation of gross weight includes packaging. Net weight is essential for consumer goods, while gross weight is essential in shipping and logistics.AspectNet WeightGross WeightDefinitionWeight of the product alone, excluding packagingTotal weight including product and all packagingIncludesOnly the usable productProduct + packaging materials (box, bottle, straw, etc.)Examples1L milk means 1L of milk only, not the bottle1L juice includes the juice, bottle, and strawUsed inFood, manufacturing, retailShipping, logisticsImportanceFor fair pricing and consumer transparencyFor calculating shipping cost and logistics planningCalculation FormulaNet Weight = Gross Weight – Tare WeightGross Weight = Net Weight + Tare WeightKey Industry RelevanceRetail, food, and manufacturing where exact product quantity mattersLogistics and transport where total load weight is criticalChallengesDistinguishing net from gross due to packaging variationAffected by changes in temperature, pressure, and inaccurate tare weight calculationHow Are Net Weight and Gross Weight Calculated?Before understanding the calculation of gross weight and net weight, it is important to understand another concept of measurement: the tare weight. So what is a tare weight? A tare weight is the weight of the packaging. Packaging can either include the main packaging or the packaging and additional containers that it comes in.The calculation of net weight and gross weight is as below:Net weight = Total Weight - Tare Weight / Gross Weight - Tare WeightGross Weight = Net Weight  + Tare WeightThe Importance of Net Weight and Gross Weight in Different IndustriesGross weight and net weight are two terms that are most commonly used in day-to-day life. However, it has great significance in different industries as well. Below are some industries where the application of net weight and gross weight is used:Shipping and LogisticsUnderstanding the concept of gross weight and net weight is crucial in the shipping and logistics industry. It helps determine shipping charges for different packages and ensures complete compliance with transport regulations. More importantly, as there are multiple packages, the transport vehicles are arranged based on the calculated weight. If the calculation of the net weight and gross weight is an error, it can lead to additional charges. At times, the package might need to be redone to meet the regulations.Manufacturing and ProductionWhen manufacturing a product or producing an item, it is essential to know the net weight of the raw material to meet the standard requirements. Knowing the net weight helps maintain inventory control, maintain the uniformity of the produced goods, and accurately calculate material costs.Net weight is a highly significant concept in this industry, as consumers must be provided with the mentioned quantity.Food IndustryKnowing and understanding the concept of net weight is extremely important in the food industry. Since strict rules need to be followed to maintain food safety, the net weight of edible items is printed on the packaging to provide accurate details to the customer.Furthermore, nutrition labelling is also a requisite in the food industry. It is essential to print everything according to the net weight so that customers can get the correct information if they are following a diet or want to avoid certain ingredients.Consumer Goods and RetailKnowing about net weight is essential to avoiding false advertising and following correct trade practices. All consumer goods are sold based on net weight, and it is required by law that a product's packaging describe its net weight. Printing the net weight is a standard rule because consumers compare products based on price and the quantity they are receiving. Hence, net weight is a significant concept in consumer goods and retail.Suggested read - Volumetric Weight FormulaChallenges in Weight Measurement The challenges that are faced by different industries in weight measurement are as follows:Packaging variability: Packing materials have different weights, which can sometimes make it challenging to weigh. It can also become difficult to distinguish net weight from gross weight.Faulty Equipment: Weighing equipment is necessary to determine the correct weight of an item. When the equipment is faulty, it will show the wrong weight, making it difficult to derive the exact weight.Changing Conditions: When it comes to liquid or semi-liquid items, the temperature and pressure can impact the gross weight as well as the net weight.Tare Weight Calculation: Since tare weight is essential to calculate gross weight or net weight, it can create errors if tare weight is challenging to weigh. This happens mostly when the shape of the container is unusual.Also check - Dimensional Weight CalculationGet Hassle-free Shipping with WareIQs's Smart Shipping SolutionsWareIQ's innovative shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codes.Control Tower & automated workflows to minimise NDRs & RTOs.Same/Next-day delivery courier options.Seamless integration with your WMS, ERPs, and shopfronts.Shipping badges to display precise Estimated Delivery Dates (EDD).Custom branded tracking pages and notifications to enhance the customer experience.Suggested read - What Is Tare Weight? A Guide to Shipping Weight CalculationConclusionThere is a slight difference between net weight and gross weight. In many industries, the calculation of net weight and gross weight is of great significance. Net weight is the actual weight of the product or goods; gross weight, on the other hand, is the combined weight of the product/item and the packaging/container. Whether it is the shipping industry or food and retail, gross weight and net weight are widely used to maintain fair practices and regulations. Various factors can pose a challenge in determining the net weight and gross weight, such as faulty equipment, failure to calculate the weight, and packaging variability.Related - Shipping Weight Discrepancy in Indian eCommerce VGM in Shipping: Understanding Verified Gross Mass RequirementsFAQs about Net Weight vs Gross WeightDoes packaging affect gross weight?Yes, packaging impacts gross weight for smaller products like cosmetics or snacks. However, when it comes to heavy-weight products, the packaging will make minimal difference.Why does gross weight matter in the shipping industry?The gross weight helps to determine proper transportation arrangements. An arrangement made based on net weight can lead to overloading and, hence, can be hazardous. It can damage the goods in transit.What is tare weight?Tare weight is the weight of the packaging. To know the tare weight, you can deduct net weight from gross weight.Is it mandatory to list the net weight of the package?Yes, most laws require manufacturers to list the net weight of the package so that consumers can make an informed decision.Can gross weight and net weight be the same?Yes, in cases of bulk machinery or goods sold without packaging, the net weight and the gross weight will be the same.

June 18, 2025

Bill of Entry Status: How to Check and What It Means in Customs?

Bill of Entry Status: How to Check and What It Means in Customs?

Have you ever ordered something internationally and found yourself wondering what happens once it crosses the border? Customs procedures can feel like an endless maze, and one term that tends to pop up often in this context is "bill of entry status." But what exactly does it mean, and why is it such a big deal? Whether you're an importer, a business owner managing logistics, or just someone fascinated by the inner workings of customs, this guide is here to clear up the mystery for you.Think of the bill of entry as more than just a piece of paperwork; it’s the golden ticket that ensures goods can cross borders legally and without unnecessary delays. But what happens when the process stalls or you're not sure where things stand? That’s when knowing how to check the bill of entry status becomes a game-changer.In this blog, we’re going to break down everything you need to know about a bill of entry: what it is, why the status matters, and, most importantly, how to track it like a pro using tools like ICEGATE. Ready to get a clear understanding of customs clearance? Let’s jump in and figure it out together.What is a Bill of Entry?Simply put, a bill of entry (BOE) is a legal document submitted to Customs authorities when goods are imported into a country. It contains detailed information about the shipment, such as:The value of goods.The description of goods.The applicable customs duty.In the world of logistics, the BOE is essential for clearing goods through customs. Without it, your imported products might sit in a warehouse indefinitely or incur hefty fines.Did you know that filing a bill of entry allows importers to claim Input Tax Credit (ITC) under GST? That’s another reason why keeping an eye on the bill of entry status is crucial.Why is it Crucial to Monitor the Bill of Entry Status?International shipments can be tricky to manage, and even minor delays can lead to higher costs, dissatisfied customers, and logistical headaches. This makes keeping an eye on your bill of entry status a critical task for businesses involved in imports. It’s more than just tracking a document – it’s about ensuring the entire process runs smoothly and without unnecessary setbacks.Smooth Customs Clearance: Monitoring your bill of entry status helps ensure your goods pass through customs without issues caused by incomplete or incorrect paperwork. Avoiding delays here saves you from paying extra storage charges or facing penalties.Accurate Duty and Tax Calculations: The bill of entry is crucial for determining customs duties, Integrated GST (IGST), and any compensation cess. Staying updated ensures you avoid calculation errors and pay the correct taxes for your shipment.Compliance with Regulations: Monitoring your BOE status through platforms like ICEGATE helps you meet import regulations, avoid missed deadlines, and prevent penalties caused by incomplete filings or late submissions.Efficient Logistics Management: A clear and up-to-date BOE status allows you to coordinate better with logistics providers, accurately predict delivery schedules, and manage your inventory more effectively, ensuring your supply chain remains uninterrupted.By using tools like the ICEGATE bill of entry status tracker, you can stay informed at every step of the process, avoid unnecessary delays, and improve the efficiency of your import operations. Being proactive is not just a smart practice—it’s the key to running smooth and cost-effective international trade.How to Check Bill of Entry Status Online?Thanks to the ICEGATE portal (Indian Customs Electronic Gateway), tracking your bill of entry status is now a simple and straightforward process. ICEGATE is the official platform for customs and GST-related activities in India, providing importers with easy access to critical information about their shipments. Whether you’re new to this or just need clarity, here’s the exact process to follow.Step-by-Step Guide to Track Bill of Entry Status via ICEGATESearch for the ICEGATE PortalOpen your browser and search for “ICEGATE Portal” on Google, or directly visit ICEGATE’s website.Access the ‘Bill of Entry’ Tracking SectionOnce on the homepage, navigate to the “BE Tracking” section. You may find it under “Enquiry” or “Tracking Tools.”Log In (If Required)Some users, such as importers or authorised agents, might need to log in with their credentials to access specific information.Enter the Required DetailsTo fetch your BOE status, provide the following information:Bill of Entry Number: A unique 13-digit identifier for your shipment’s BOE.Port Code: Identifies the customs location where the BOE was processed.BOE Filing Date: The date the BOE was submitted.Submit and Check the StatusHit the "Search" button, and the portal will display your BOE status. The information includes:Payment confirmation and duty status.Customs clearance progress.Shipment value, importer details, and channel number.Government agency approvals and document validity.Resolve Issues or Get Real-Time UpdatesIf the status seems outdated or unclear, use the “Query ICEGATE” feature to fetch real-time updates directly from the customs database.Key Components of a Bill of EntryWant to decode the information on a BOE? Here are the critical elements you’ll find:Importer’s Details: Name, address, and Import Export Code (IEC).Exporter’s Information: Name and origin of the shipment.Goods Description: Quantity, monetary value, and tariff classification.Port Code: Identifies the customs location.Duties and Taxes: Includes IGST, customs duty, and cess.Every detail on the BOE has a purpose, so ensure its accuracy during filing. Mistakes can lead to delays or penalties.Common Issues with Bill of Entry and How to Resolve ThemIssueDescriptionResolutionBOE Status Not UpdatedThe status may not show the latest updates due to technical glitches.Use the “Query ICEGATE” feature to fetch real-time data from the ICEGATE portal.Mismatch in DetailsBOE details don’t align with your shipment or supporting documents.Contact your Clearing House Agent (CHA) or the customs department to rectify the discrepancies.Delayed ClearanceShipment clearance is delayed due to unpaid duties or missing documents.Ensure all duties and taxes are paid promptly and submit complete documentation for processing.This table highlights the most common BOE issues and provides actionable steps to resolve them efficiently, ensuring smoother customs clearance.Related article - Difference Between Excise Duty and Custom DutyHow Can WareIQ Help Simplify Your Import and Fulfillment Process?When managing imports and navigating customs processes like tracking your bill of entry status, efficient logistics and inventory management are critical to avoiding delays and ensuring smooth operations. This is where WareIQ steps in as a reliable partner for eCommerce businesses.WareIQ is a Y-Combinator-backed, full-stack fulfilment and shipping platform designed to meet the needs of modern eCommerce operations. Here’s how WareIQ can optimise your supply chain:Nationwide Fulfillment Network: WareIQ operates fulfilment centres across 12+ cities, ensuring inventory is strategically positioned close to your customers for faster delivery. It supports multi-channel fulfilment across platforms like Amazon, Flipkart, Shopify, and others.Advanced Inventory Management: With AI-powered inventory planning, WareIQ helps prevent stockouts and automates replenishment to ensure uninterrupted supply chain operations.Smart Shipping Options: WareIQ offers delivery to 27,000+ pin codes through a multi-carrier engine, providing same-day or next-day delivery options. Features like branded tracking pages and accurate delivery timelines improve customer experience.Compliance Assistance: WareIQ simplifies GST registrations, APOB/PPOB setups, and ensures marketplace-compliant operations, easing the burden of customs and compliance management.Partnering with WareIQ means fewer delays, better efficiency, and more satisfied customers. Manage your import and fulfilment processes effortlessly with WareIQSuggested read - Shipping Bill vs Bill of Lading: Key Differences ExplainedWrapping UpUnderstanding and tracking the bill of entry status is a crucial part of ensuring seamless customs clearance and smooth logistics operations. From preventing delays to avoiding fines, staying updated on the BOE status can save businesses from unnecessary hassles. Platforms like ICEGATE make it easier to monitor shipments, while solutions like WareIQ further enhance logistics efficiency with advanced fulfilment and shipping support.By leveraging the tools and knowledge outlined in this blog, importers can navigate the complexities of customs with ease and focus on growing their business. Whether you’re an eCommerce seller or a business owner managing global trade, staying proactive with your logistics and customs processes will ensure success in the long run.You may also like to read - How to Check Your Shipping Bill Status Online in India?Frequently Asked Questions (FAQs)What is the SEZ bill of entry status?The SEZ bill of entry status refers to the tracking of customs clearance for goods being imported into or exported from Special Economic Zones (SEZs). It provides updates on document validation, customs duties, and clearance progress specific to SEZ regulations.What happens if my SEZ bill of entry status is not updated?If the SEZ bill of entry status is not updated, it could be due to system delays or incomplete filings. Use the "Query ICEGATE" feature for real-time updates or contact your CHA for assistance.What is the ICEGATE portal, and how does it help with tracking the bill of entry status?ICEGATE (Indian Customs Electronic Gateway) is the official platform for customs and GST-related activities in India. It allows importers to track their bill of entry status, view payment confirmations, check customs clearance updates, and access other shipment-related information.Can I check the status of the bill of entry without a clearing house agent (CHA)?Yes, you can track the status yourself through the ICEGATE portal if you have the required details like the Bill of Entry number, Port Code, and Date of Filing. However, a CHA can assist with resolving any issues or discrepancies in the process.What is bill of entry tracking and how does it work?Bill of entry tracking is the process of checking the current status of your import documents submitted to Indian Customs. You can track it online using the ICEGATE portal by entering your Bill of Entry number, date, and port of entry.How does customs ICEGATE bill of entry tracking work?Customs ICEGATE bill of entry tracking allows importers to check the real-time status of their shipments online. By visiting the ICEGATE portal, you can enter your Bill of Entry number, date, and location to track clearance progress with Indian Customs.

June 17, 2025

Shipping Bill vs Bill of Lading: Key Differences Explained

Shipping Bill vs Bill of Lading: Key Differences Explained

When it comes to international shipping, several documents must be considered. These documents are of great significance, as they contain information about shipments. Some of the documents that stand out for their importance include shipping bills and bills of lading. To a common man, both documents seem similar; however, they are quite distinct in terms of their importance in the logistics chain. Businesses involved in the shipping industry must understand the key differences between Shipping Bill vs Bill of Lading.Additionally, considering that in June 2022, approximately 2.1% of the 45 million bills were made digitally, it highlights how the shipping industry is transitioning to digital documents, replacing traditional paperwork such as the shipping bill and bills of lading; it thus becomes necessary to be aware of various documents and their usage. In this article, we will understand what is a shipping bill, what is a bill of lading and what are the differences between Shipping Bill and Bill of Lading.What is a Shipping Bill?One of the primary documents required by the customs authority during the clearance of goods is the shipping bill. The shipping bill contains detailed information about the goods that are being exported or imported.Details on a shipping bill include the following aspects:The complete description of the good, such as the type, value and the quantity.It also contains detailed information about the exporter and importer, including their names, numbers, and addresses.It also contains the HS code, which is the Harmonised System code for classifying the goods.The shipping bill also has details about the port for loading, as well as the destination. It specifies the exact location from which the goods are being shipped and to which location they are being shipped.Shipping bills also include export taxes, which apply to the goods.What is a Bill of Lading?The bill of lading is a document that is legalised, and it is a necessary requirement for every shipper. It is issued by the carrier to the shipper, thereby acknowledging the receipt of goods for shipment. A bill of lading serves several purposes.Purposes served by a bill of lading include:It confirms that the carrier had successfully received the shipment of goods.A bill of lading also outlines the terms and conditions in detail under which the goods are shipped.A bill of lading necessarily contains a document of title. It represents the ownership of the goods. The document title can be used to transfer ownership by endorsement.Shipping Bill Vs Bill of Lading: Key DifferencesWhen the international shipping industry is considered, the shipping bill is quite different from the bill of lading. The differences between a shipping bill and a bill of lading are explained below in detail:AspectShipping BillBill of LadingType of documentA shipping bill is a legal document that is required for customs clearance.On the contrary, a bill of lading is a legal document that is used by shippers or carriers.Main PurposeThe primary purpose of a shipping bill is to obtain customs clearance and permission for export.The primary reason why a bill of lading is issued is for the acknowledgement of goods and terms and conditions of a shipment.OwnershipA shipping bill does not represent ownership.A bill of lading does represent ownership and can also be transferred.Authorities involvedAuthorities involved in verification or issuance are customs authorities.The bill of lading is governed by maritime laws and does not involve customs authorities.Mode of generationA shipping bill is generated by authorities such as ICEGATE in India and is generated electronically.A bill of lading can be generated electronically or manually. It is usually generated by the shipping line.Requirement of signaturesA shipping bill may require signatures from customs, CHA, or even the exporter.A bill of lading mandatorily requires a signature from the carrier.Customs requirementA shipping bill is an essential document needed for customs clearance.A bill of lading is not needed for customs clearance; however, it is needed for cargo delivery.Retention periodThe retention period of a shipping bill as per legal or compliance norms is for 5 to 7 years.A bill of lading must be preserved for dispute handling and record keeping, as it is required for cargo release.AmendmentsAmendments to a shipping bill can be made before the departure of cargo or before customs clearance.Amendments to a bill of lading are difficult if the cargo is already shipped out.JurisdictionA shipping bill falls under export regulations or customs clearance in a country.A bill of lading falls under maritime or contractual laws.Related documentsDocuments which are related to a shipping bill include certificate of origin, LUT (for exports), packing list and invoice.Documents related to a bill of lading include a delivery order, letter of credit or freight invoice.Get Seamless Documentation With Shipping Solutions From WareIQWareIQ’s smart shipping solution helps eCommerce brands minimise cost leakages caused by RTOs, fake delivery attempts in NDR, weight reconciliation issues, and more. Our solution also offers prompt support for handling urgent client escalations, ensuring smooth operations at all times.Our solution offers the following capabilities:Multi-carrier engine enabling fast deliveries across 24,000+ pin codesControl Tower & automated workflows to minimise NDR & RTOsSame/Next-day delivery courier optionsSeamless Integration with your WMS, ERPs and StorefrontsShipping Badges to display precise Estimated Delivery Dates (EDD)Custom branded tracking pages and notifications to enhance customer experienceSuggested read- How to check Bill of Entry StatusConclusionA bill of lading and a shipping bill are two essential documents in international trade. Hence, it is necessary to understand both the documents and their differences as well. A shipping bill ensures smooth customs clearance, as it serves as a formal permission document, which is essential. On the other hand, a bill of lading is like a contractual pass that is issued by the carrier.Understanding the nuances of Shipping Bill vs Bill of Lading is necessary not only for compliance but also for seamless and efficient logistics management. It is also required to protect the cargo being shipped, maintain healthy cash flows, and obtain timely clearances. Being unaware of the significance and differences between these documents can lead to monetary penalties, delays, and even the seizure of shipments.Related read - How to Check Your Shipping Bill Status Online in India?FAQs About Shipping Bill vs Bill of LadingWho issues the shipping bill?A shipping bill is a document generated electronically by either the exporter or their authorised agent. It is usually generated through the ICEGATE portal in India.Is it necessary to have a shipping bill generated for every export?Yes, a shipping bill is a necessary document required for customs clearance on all shipments exported from India.Is a bill of lading similar to a sea waybill?No, a bill of lading is different from a sea waybill. A bill of lading is a document that essentially represents ownership of goods. On the other hand, a sea waybill is a non-negotiable document and does not serve as a document of title.Will there be any complications if there is a discrepancy found in a shipping bill?If there are discrepancies in a shipping bill, it can cause various problems, such as delayed customs clearance processes and potential penalties and fines.

June 16, 2025